Newton in UK asset sale

Disposal: by Newton in UK's East Midlands region

Steve Marshall

 28 January 2013 15:40 GMT

Calgary-based Newton Energy has struck a preliminary deal to dispose of non-core assets in the UK’s East Midlands as it looks to focus on development of the region’s Belvoir oilfield prospect.

The company is selling its interests in the Cropwell Butler oilfield in the PEDL 254 licence and the north-western half of the adjacent PEDL 204 licence under a letter of intent with an unnamed Canadian independent, Newton said in a statement.

The buyer will also take over Newton’s outstanding exploration work commitment on the latter permit, as well as gain an option to acquire the remainder of PEDL 254 and the entire PEDL 255, including work commitments, for a payment of $325,000.

A condition of the deal is that the buyer ceases all litigation against Newton for failing to offer it pre-emption…

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